April 13, 2025

Institutional and financial mechanisms of the European Green Deal in the processes of early recovery and post-war transformation of Ukraine

Key Points

Ukraine increased renewable energy to 22% by 2023, reducing CO2 emissions per capita from 4.6 to 3.6 tonnes.
Effective institutional coordination models were identified from Croatia and Georgia, showcasing their high renewable energy shares.
The research methodology employed interdisciplinary analysis, focusing on environmental finance and case studies of post-crisis countries.
Improved financial involvement and regulatory adaptation are necessary for successful green recovery in Ukraine amidst ongoing challenges.

Abstract

The research relevance is determined by the need for environmental integration into national policies for the reconstruction of Ukraine in the context of a full-scale war and European integration within the framework of the European Green Deal. The study aimed to analyse the institutional and financial mechanisms for implementing the principles of the European Green Deal in the processes of early recovery and post-war transformation of Ukraine. The research methodology was based on an interdisciplinary approach that combined quantitative analysis of environmental finance, case studies of post-crisis countries, and a comparative assessment of institutional compatibility. As a result, the institutional architecture of the European Green Deal was systematised, emphasising key executive and financial actors, and the mechanisms of their interaction with the Ukrainian authorities were identified. The study analysed the chronology of political decisions in 2020-2023 on decarbonisation, energy efficiency and the development of renewable energy sources. In particular, by 2023, Ukraine increased the share of renewable energy to 22% in its generation structure, and reduced CO2 emissions per capita from 4.6 tonnes (2020) to 3.6 tonnes (2023), but maintained uneven integration of environmental criteria into recovery plans. A comparative analysis of the experience of Croatia (renewable energy sources 70%, share of green projects in national programmes over 35%) and Georgia (renewable energy sources 80.3%) identified effective models of institutional coordination, including the creation of a single body for environmental management. Key barriers have been identified: dispersed responsibilities, poor coordination between ministries, an unstable regulatory framework, and limited access to climate finance. The study emphasised that effective green recovery in Ukraine requires improved mechanisms of financial involvement and adaptation of the regulatory framework to EU standards. The practical significance of the study was to formulate recommendations for the modernisation of institutions. The findings can be used in the development of a national green recovery strategy and the process of approval by international donors, considering the criteria of long-term environmental sustainability

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